Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

Subject: 
Enclosed please find the “Alert Items and Contingency Arrangements for Financial 
Institutions”.

Explanations: 
The “Alert Items and Contingency Arrangements for Financial Institutions” have 
been drawn up in oder to avoid disruptions that may affect funds allocation of 
financial institutions participating in the CBC interbank funds transfer system and 
online system for open market operations due to SARS and other emergencies and to 
enable participating financial institutions to have a clear understanding of the 
actions that needed to be taken.


The alert items and relevant measures for financial institutions in responding to threats posed by SARS:
1.Financial institutions are required to properly allocate human resource, and plan 
　relevant matters in advance:
　(1)When the headquarters of a financial institution is quarantined or 
　　 inoperative, the fund transfer personnel may transfer funds online or manually 
　　 by issuing checks. Each participating financial institution shall make 
　　 arrangements to stagger work shifts of backup personnel in advance;
　(2)Financial institutions are advised to keep the CBC’s blank checks and 
　　 promissory notes in separate locations. In case all such locations are 
　　 quarrantined and the blank checks or notes may not be taken out for use, it is 
　　 permissible to fill out the requisition form for blank checks and notes, and 
　　 receive blank checks and notes from the CBC.
　(3)When it is necessary to increase the number of authorized signatories to  
　　 initiate fund transfers at the headquarters or branches, financial 
　　 institutions should submit the required signature cards and application forms 
　　 to the CBC for record in advance.
2.Preventive Measures:
　(1)In case the headquarters of a financial institution is quarrantined, but part 
　　 of the fund transfer personnel can still operate at branch offices or other 
　　 locations:
　　 i.The branch may continue to operate online businesses if its eqquipped with 
　　　 online facilities,
　　 ii.In case the branch is not equipped with online facilities, the personnel 
　　　　can issue checks manually;
　　 iii.In case checks are issued manually, the branch is required to deliver such 
　　　 checks to designated CBC locations as below:
　　　 (i)if the first floor lobby in the Second Building of the CBC is in 
　　　　　operation, financial institutions shall deliver the checks to that lobby
　　　 (ii)if the first floor lobby in the Second Building of the CBC is not in 
　　　　　operation, financial institutions shall deliver the checks to locations 
　　　　　specified by the CBC (e.g. Department of the Treasury of CBC or Taiwan 
　　　　　Clearing House).
　(2)If a financial institution and all its funds transfer personnel are 
　　 quarantined, but it has made prior arrangements to appoint other banks to act 
　　 on its behalf:
　　 i.Under such circumstances, the financial institution may request its 
　　　 appointed financial institutions to transfer funds on its behalf, if the 
　　　 payments are urgent;
　　 ii.Financial institutions are advised to obtain prior consent from its 
　　　 correspondent banks and enter into detailed agreements to clarify the rights 
　　　 and responsibilities of each party to avoid disputes;
　　 iii.When the correspondent bank executes payment instructions, it should use 
　　　 the information column to alert the payee bank of the specifics of the 
　　　 transactions.
　(3)Notice
　　 When a financial institution takes measures as set out in (1) and (2) above, 
　　 it shall provide the CBC and its correspondent banks with information 
　　 concerning the names and telephone numbers of relevant contact persons using 
　　 the form attached herewith  (the fax and telephone numbers of CBC are included 
　　 in the form).